Friday, October 20, 2006

Identity Theft Methods: Credit Card Skimming


This method is particularly devious. You can be handing over your information to your identity thief without even realizing it. It can happen in a restaurant, store or anywhere your credit card leaves your possession for swiping, and he/she needs to do is an extra swipe. It is called credit card skimming.

Example: You hand your waiter at a restaurant your credit card to pay your bill. He walks away with the credit card, and once the card is out of your site he can make his swipes. He will first swipe it though a small hand-held device called a skimmer. This gadget will record the information the thief needs from your card. He will then swipe it again to pay your bill and return to your table with your receipt. He will probably make several swipes throughout the evening. He will then download the information to his computer where he will use the information to have a counterfeit card made or he will just use the information to make online purchases before you discover what happened.

These skimming devices have also been attached to ATM machines for the same purpose, and some of them with cameras to record PIN numbers.

This one can be hard to protect yourself against. The best defense is to keep an eye on the card whenever possible, or do as much as possible using cash instead of a credit card. Go over your monthly credit card bills every month just in case. While should not fear and distrust everyone, it doesn't hurt to be vigilant.

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